Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 125 - Demerger relief  

Subdivision 125-B - Consequences for owners of interests  

Operative provisions

SECTION 125-90   Cost base adjustments where no CGT event  

125-90(1)    
You must adjust the *cost base and *reduced cost base of an *ownership interest you own in a company or trust if:

(a) a *demerger happens to a *demerger group of which the company or trust is a member; and

(b) you owned an original interest in the *head entity of the demerger group just before the demerger; and

(c) no *CGT event happens to the original interest, but you *acquire a new interest under the demerger.

125-90(2)    
The adjustments you must make are the same as the adjustments you would have to make under section 125-80 if you could have chosen a roll-over under this Subdivision for the *demerger and you had done so.